BILL NUMBER: AB 816	CHAPTERED  08/09/01

	CHAPTER  164
	FILED WITH SECRETARY OF STATE  AUGUST 9, 2001
	APPROVED BY GOVERNOR  AUGUST 8, 2001
	PASSED THE SENATE  JULY 21, 2001
	PASSED THE ASSEMBLY  MAY 24, 2001
	AMENDED IN ASSEMBLY  MAY 21, 2001

INTRODUCED BY   Assembly Member Thomson

                        FEBRUARY 22, 2001

   An act to repeal Section 18510 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 816, Thomson.  Income Tax:  personal income tax:  conformity
with federal law:  exclusion of gains from sale of a personal
residence.
   The Personal Income Tax Law requires the calculation of an
individual's gross income to be computed without regard to the
exclusion, provided by a specified provision of the Internal Revenue
Code, of the gain from the sale or exchange of a taxpayer's personal
residence.
   This bill would conform to federal tax practice by allowing
California taxpayers to exclude gains from the sale or exchange of a
personal residence from the computation of their gross income for
state income tax purposes.
   This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 18510 of the Revenue and Taxation Code is
repealed.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the California Constitution and shall go into immediate
effect.